Summary
Fifth Third Bancorp (FITB) has filed an 8-K detailing the amendment to its Articles of Incorporation to establish the terms of its 4.95% Non-Cumulative Perpetual Preferred Stock, Series K. This amendment became effective upon filing on September 16, 2019. The primary purpose of this filing is to inform investors about the formalization of this new preferred stock class. Following the establishment of Series K Preferred Stock, Fifth Third Bancorp announced the successful closing of an offering of 10,000,000 depositary shares, each representing a fractional interest in the Series K Preferred Stock. The company raised approximately $241.85 million in net proceeds from this offering after accounting for expenses and underwriting discounts. This move indicates Fifth Third's strategy to strengthen its capital base through the issuance of preferred equity, which can be attractive to investors seeking stable income streams.
Key Highlights
- 1Fifth Third Bancorp established its 4.95% Non-Cumulative Perpetual Preferred Stock, Series K.
- 2The company closed an offering of 10,000,000 depositary shares related to the Series K Preferred Stock.
- 3Net proceeds from the depositary shares offering amounted to approximately $241.85 million.
- 4The issuance of preferred stock aims to bolster the company's capital structure.
- 5An Underwriting Agreement was previously entered into with major financial institutions for the offering.
- 6The terms of the Series K Preferred Stock and the related depositary shares are now officially defined in the company's filings.